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RSA 412:35 · Auditable Basis Policies

Title: XXXVII: INSURANCE
Chapter: 412 · REGULATION OF FORMS AND RATES FOR PROPERTY AND CASUALTY INSURANCE
Status: current
Official source linked: Yes

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412:35 Auditable Basis Policies. –

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All workers' compensation policies issued in this state shall be issued on an auditable basis. A final premium shall be charged based upon actual exposure existing during the term of the policy coverage.

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II.

Audits shall be conducted by either physical inspection of an insured's records and operations, or by telephone, mail, electronic communication or by virtual means as requested by the insurer to the insured.

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III.

Audits shall be completed promptly, no more than 120 days after the expiration or cancellation of the policy, provided that there is no bona fide dispute. Any insurer that violates the provisions of this paragraph shall be subject to the penalty provisions of RSA 412:40.

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IV.

(a) In cases where there is a bona fide dispute, the insurer shall notify the insured in writing that there is a bona fide dispute and this notice shall toll the 120-day time period until the dispute is resolved. Upon resolution of the dispute, the insurer shall proceed to complete the audit within the time remaining in the 120-day time period. A bona fide dispute includes the insured's failure to cooperate with the audit, provided the insurer has notified the insured of:

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(1)

The acts or omissions that constitute the insured's failure to cooperate; and

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(2)

The consequences of the insured's failure to cooperate, including delay in the completion of the audit.

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(b)

The consequence of the insured's failure to cooperate with this paragraph within 30 days of the notice shall be the assessment of a penalty equaling 3 times the estimated premium and setting the estimated premium as the final premium. Upon receipt of the penalty and final premium, the insured shall have an additional 10 days to request that the penalty be waived and to have the final premium be recalculated based upon actual exposure by completing the audit that is required by paragraph III. No timely request by an insured for a waiver and recalculation shall be denied by the insurer. The request shall be granted upon completion of the audit.

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Gross unearned premium shall be returned pursuant to RSA 402:81. Source. 2003, 150:1. 2008, 211:1. 2014, 31:9, eff. July 26, 2014. 2020, 37:119, eff. Sept. 27, 2020. 2024, 331:2, eff. Jan. 1, 2025.

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Source note

Source. 2003, 150:1. 2008, 211:1. 2014, 31:9, eff. July 26, 2014. 2020, 37:119, eff. Sept. 27, 2020. 2024, 331:2, eff. Jan. 1, 2025.

Source history

2003, 150:1
2008, 211:1
2014, 31:9, eff. July 26, 2014
2020, 37:119, eff. Sept. 27, 2020
2024, 331:2, eff. Jan. 1, 2025

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Bill relationships

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y municipal subdivision thereof, including any county, city, town, school district, school administrative unit or other district, to procure the policies of insurance described in RSA 412 or participate in pooled risk management, or self-insurance, pursuant to RSA 5-B. In any action against the state or any municipal subdivision thereof to enforce liability on account of a risk so insured against, the in
2026 HB1064-FN reference · effective 2027-01-01
y municipal subdivision thereof, including any county, city, town, school district, school administrative unit or other district, to procure the policies of insurance described in RSA 412 or participate in pooled risk management, or self-insurance, pursuant to RSA 5-B. In any action against the state or any municipal subdivision thereof to enforce liability on account of a risk so insured against, the in
2026 HB1197 amend · effective 2027-01-01
ance Trade Practices. Amend RSA 417:4, IX(b)(15) to read as follows: (15) The rebate of all or part of a producer's commission on the sale of commercial insurance as defined in RSA 412 provided the insurer expressly provides for such rebate in its rate filings [approved by the commissioner] and the reduction of the commission is not disclosed to the insured either directly or indirectly; 17 Public A
2026 HB1197-FN amend · effective 2027-01-01
ance Trade Practices. Amend RSA 417:4, IX(b)(15) to read as follows: (15) The rebate of all or part of a producer's commission on the sale of commercial insurance as defined in RSA 412 provided the insurer expressly provides for such rebate in its rate filings [approved by the commissioner] and the reduction of the commission is not disclosed to the insured either directly or indirectly; 17 Public A
2026 HB1353 amend · effective 2027-01-01
t Enacted by the Senate and House of Representatives in General Court convened: 1 New Section; Motor Vehicle Insurance Premium Discounts for Annual Safety Inspections. Amend RSA 412 by inserting after section 16 the following new section: 412:16-a Motor Vehicle Insurance Premium Discounts for Annual Safety Inspections. I. Each insurer writing motor vehicle insurance in this state shall include
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y municipal subdivision thereof, including any county, city, town, school district, school administrative unit or other district, to procure the policies of insurance described in RSA 412 or participate in pooled risk management, or self-insurance, pursuant to RSA 5-B. In any action against the state or any municipal subdivision thereof to enforce liability on account of a risk so insured against, the i
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y municipal subdivision thereof, including any county, city, town, school district, school administrative unit or other district, to procure the policies of insurance described in RSA 412 or participate in pooled risk management, or self-insurance, pursuant to RSA 5-B. In any action against the state or any municipal subdivision thereof to enforce liability on account of a risk so insured against, the i
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ds, and other mitigation and resiliency programs. Be it Enacted by the Senate and House of Representatives in General Court convened: 1 New Subdivision; Reporting. Amend RSA 412 by inserting after section 14 the following new subdivision: Reporting 412:14-a Reporting. I. To promote awareness of and incentives for fortified homes and commercial property standards, and other mitigation and r